Homeowner Harassment And Confidentiality

[CoCat]

Good morning!

I am looking for specific references to any and all laws which prevent us from speaking to a homeowner about assignment results for lender work. I recently ran into a disgruntled homeowner who would not take no for an answer, and I'd like to have this on hand to deal with homeowners who continue to complain in the future. Just a short list of the specific references to our regulations, for those who think we are "making the rules up". I'm under the impression there are several state and national regulations addressing this, including USPAP Confidentiality and Dodd-Frank. I'd like something more concrete as a reference though.

Thanks in advance!

 

[JTip]

Use the 'sandwich' technique:

That is a great question about you home. I don't want to go to jail and end up homeless/jobless by answering your questions. Please discuss your concerns with your lender and have a great day.

 

[Elliott]

https://www.appraisalinstitute.org/assets/1/7/Wintrol_v2.pdf

https://www.appraisalinstitute.org/assets/1/7/FNC_G_L_B_Priv_Guide_Fin.pdf

I just say, the Fair Credit Act says I can't talk about the report with anyone except the lender.(need to say sympathetically).

 

[andrew81]

ASSIGNMENT RESULTS: An appraiser’s opinions or conclusions developed specific to an assignment.
See Advisory Opinion 21, USPAP Compliance.
See PREAMBLE and Advisory Opinion 21, USPAP Compliance.
See Confidentiality section of the ETHICS RULE.

Comment: Assignment results include an appraiser’s:
• opinions or conclusions developed in an appraisal assignment, not limited to value;
• opinions or conclusions, developed in an appraisal review assignment, not limited to an opinion about the quality of another appraiser’s work; or
• opinions or conclusions developed when performing a valuation service other than an appraisal or appraisal review assignment.

Physical characteristics are not assignment results.

Confidentiality:
An appraiser must protect the confidential nature of the appraiser-client relationship.
An appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results.
An appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment.
An appraiser must not disclose: (1) confidential information; or (2) assignment results to anyone other than:
• the client;
• parties specifically authorized by the client;
• state appraiser regulatory agencies;
• third parties as may be authorized by due process of law; or
• a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation.

An appraiser must take reasonable steps to safeguard access to confidential information and assignment results by unauthorized individuals, whether such information or results are in physical or electronic form.
An appraiser must ensure that employees, co-workers, sub-contractors, or others who may have access to confidential information or assignment results, are aware of the prohibitions on disclosure of such information or results.
A member of a duly authorized professional peer review committee must not disclose confidential information presented to the committee.
Comment: When all confidential elements of confidential information and assignment results are removed through redaction or the process of aggregation, client authorization is not required for the disclosure of the remaining information, as modified.

 

[andrew81]

as a licensed appraiser in the state of colorado i must follow state law which requires that i not discuss the appraisal with anyone except my client

CODE OF COLORADO REGULATIONS 4 CCR 725-2
Division of Real Estate

CHAPTER 11: STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE
11.1 The USPAP was adopted and incorporated by reference in Board Rule 1.10. The 2014-2015 edition of the USPAP, incorporating the amendments made through February 1, 2013 will remain
in effect through January 6, 2016. Beginning January 7, 2016, the 2016-2017 edition of the USPAP will be in effect.

 

[J Grant]

Good morning!

I am looking for specific references to any and all laws which prevent us from speaking to a homeowner about assignment results for lender work. I recently ran into a disgruntled homeowner who would not take no for an answer, and I'd like to have this on hand to deal with homeowners who continue to complain in the future. Just a short list of the specific references to our regulations, for those who think we are "making the rules up". I'm under the impression there are several state and national regulations addressing this, including USPAP Confidentiality and Dodd-Frank. I'd like something more concrete as a reference though.

Thanks in advance!

If a HO "won't take no for an answer", it's because the appraiser does not know how to end the conversation. Simply say it's a client and USPAP requirement that appraiser not discuss assignment results with anyone other than the client, please contact your lender...and if HO objects/keeps talking, say, "Again, please contact your lender, I must leave for an appointment", and hang up the phone, and do not answer the phone again with that caller or ID, ( or respond to any emails otehr than the first email referring the HO to address any questions to the lender )

 

[CoCat]

Thanks everyone for the feedback, and specifically the quoted regulations and codes. My only direct contact with the person has been my standard (and perhaps not sympathetic enough) "...per regulations we are unable to discuss the report with anyone other than the client, which is the mortgage lender and please direct any questions you have directly to your lender" ... which is the end of the conversation on my end, apparently not theirs. I've received threatening messages from them, including that I "made up" these regulations. So for the rare homeowner that is hyper-aggressive the direct verbiage and references are perfect.

 

[hastalavista]

When Dodd-Frank first came out, our fellow forumite, Rich Heyn, was giving classes on its ramifications.
From that class I took his suggestions and much of his wording and developed this statement which is included in all of my residential-mortgage appraisals:

Notice to borrower(s): On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law. This law requires changes concerning consumer disclosure. We at Metrocal Appraisal applaud the move toward more disclosure and transparency. One significant change is consumers are entitled to a copy of the appraisal report used in the mortgage-decision 3-days prior to the close of escrow.
Because of Metrocal Appraisal's regulatory requirements and contractual agreements, our firm's policy limits us to discussing the appraisal report and the appraisal results with our client (the lender) only. If you have any questions or concerns about the appraisal report, please contact your lender. There is an established procedure where the lender can address concerns while maintaining regulatory compliance.
​

I'm more comfortable taking a call from an angry borrower than most. I'm also comfortable about discussing general issues with borrowers. And, I want to know if they think there is a factual mistake in the appraisal.
But if the conversation moves toward discussing specific adjustments, the value, comp selection, etc., I refer them to this statement (I put it on page three; in the commentary line above the cost approach section) and walk them through the process of contacting and raising the issues with their lender. Once they do that, then the lender has a mechanism to reach out to the appraiser to determine what should be done.

One thing that Rich pointed out and that I agree with: Citing technical regulations to a borrower might shut them up, but it is equally likely to **** them off. And, if one were to only cite the regulation, one still leaves the door open for the borrower:

Appraiser: I can only discuss the appraisal results with the client and I am not authorized to speak to you.
Borrower: I have written authorization from the lender; I'm emailing it to you now. I'll wait to you read and then you can talk to me direct.​

That's why I include in my notice this part:
"...Because of [your appraisal company's name here] regulatory requirements and contractual agreements, our firm's policy limits us to discussing..." (my bold for emphasis here)
Still gives me the ability to limit the discussion to the client only. It is my firm's policy and there is a mechanism available that can address all the issues.

The above process has worked well for me. Good luck!

 

[residentialguy]

That's why I include in my notice this part:
"...Because of [your appraisal company's name here] regulatory requirements and contractual agreements, our firm's policy limits us to discussing..." (my bold for emphasis here)
Still gives me the ability to limit the discussion to the client only. It is my firm's policy and there is a mechanism available that can address all the issues.

 

[residentialguy]

I have always attached a letter to my reports to the homeowner/borrower to keep this type of harassment at bay.

***Important Information for Borrower and/or Property Owner***
This report was created specifically for the Lender stated above, who is the Client and the only intended user. This is NOT intended for any purchaser
to rely on the appraisal to influence the purchaser’s decision to buy the appraised property, nor is it intended to influence the homeowner
in any decision regarding the property or financing. Even though you may pay an appraisal fee or later receive a copy of this
report from the Lender/Client, this appraisal report that I have prepared is for the Lender/Client’s use only and written in
language and format the Lender requested and understands. No other users are intended or inferred. You are not considered or
authorized as an Intended User and are not to use or rely on my appraisal for your own purposes. This appraisal report and all
of the appraiser’s work in connection with the appraisal assignment are subject to the limiting conditions and all other terms
stated in the report. Any use of the appraisal by any party, regardless of whether such use is authorized or intended by the
appraiser, constitutes acceptance of all such limiting conditions and terms stated here and within the report. The appraiser is
not to be held liable in any unauthorized use of this report.

If you require an appraisal for your own use or are concerned about the property’s value or any conditions which may affect the
property, you should engage an independent appraiser of your own choosing for that use. Because of company policy as well as duties and
confidentiality rules under the Uniform Standards of Professional Appraisal Practice and other regulations and guidelines, I
am not allowed to speak with anyone but the Lender about the results of this appraisal assignment. If you have any questions
or comments regarding my appraisal, please contact the Lender/Client.

Sincerely,

Res